IOSCO Final Report on Compliance Function at Market Intermediaries

27 March 2006

IOSCO released the final report of its technical committee. The paper reviews existing IOSCO principles and establish broad supplementary principles in the area of compliance. Market intermediaries should conduct themselves in a way that protects the interests of their clients and helps to preserve the integrity of the markets.

Although different jurisdictions may have different approaches and policies to help ensure compliance with their securities regulatory requirements, they share a common belief that the compliance function at market intermediaries plays an essential role in preventing possible misconduct and in promoting ethical behaviour, which in turn can contribute to fair and orderly markets and investors’ confidence in the markets.

The report places the focus on the securities regulatory requirements. However, IOSCO expects market intermediaries to comply with all applicable regulatory requirements. It should also be noted that, to the greatest extent practicable, the principles set forth in this report are consistent with those developed by the Basel Committee, since banks are also involved in the securities markets and subject to securities regulation.

Document

© IOSCO